Lean and EnvironmentUniversity of Washington

January 22, 2010

Michelle Gaither, Pollution Prevention Resource Center »B.S. Industrial Engineering, 1988»M.S. Environmental Science, 1995

Acknowledgments: Partially adapted from:»Ross & Associates Environmental Consulting, »EPA’s Lean & Environment Toolkits

Additional thanks to: Canyon Creek Cabinet Company, Lasco Bathware, Columia Paint & Coatings, Woodfold Manufacturing, ON Semiconductor, Oregon Manufacturing Extension Partnership (www.omep.org), Impact Washington, Idaho Department of Environmental Quality, Idaho Department of Energy Resources

Presentation Objectives

» Describe how lean manufacturing principles relate to environmental performance.

» What is happening in Lean and Green?» Learn by examples from different case studies.

What is Lean?

» A continuous-flow production approach, pioneered by Henry Ford, further developed by Toyota, and adapted by many others

» Lean thinking aims to produce:

• high quality products and services • at the lowest cost • with maximum customer responsiveness

» Seeks to eliminate “waste” which is defined as any non-value added activity, input, or output

Lean = Eliminating Waste

Value-Added

Typically 95% of all lead time can be non-value-added.Typically 95% of all lead time can be non-value-added.

Overproduction

Waiting

Transportation

Non-value-added processing

Excess inventory

Defects

Excess motion

Underutilized people

Environmental waste

Non-Value-Added

What Lean Does

Lean reduces the capital and time intensity of manufacturing products

$$$

&

Time

Lean Philosophy

Shorten time line between customer order and product shipment by eliminating waste

CustomerOrder

Waste ProductShipment

•Time

Customer•Order

ProductShipment

Lead Time (Shorter)

Business as Usual

Waste

Lean Manufacturing

©Washington Manufacturing Services www.wamfg.org

Seven Wastes ‘Muda’

» Overproduction» Transportation

» Waiting» Inventory » Motion » Over Processing » Defects» Underutilized

employees

•Poor •Scheduling

•Quality Problems

•Line Imbalance

•Long Vendor Deliveries

•LongStart-up

•Time

•Poor Housekeeping

•Communication Problems•Machine

Breakdowns

•Long Transportation•Absenteeism

•Sea of Inventory

Adapted from www.mep.nist.gov

House of Lean (& Environment) Building Blocks

Quick Changeover

Standardized Work

Batch Reduction

Teams

Quality at Source

5S System Visual Controls

Plant Layout

POUS

Cellular/FlowPull/Kanban

TPM

•Value•Stream•Mapping

•Continuous Improvement

P2

•9

Why Are You Hearing About Lean? » Lean production is becoming more & more widespread

• At least 30-40% of U.S. manufacturing firms are engaged in lean; 5% are pursuing it aggressively

• Many organizations in King County and the Pacific NW are implementing Lean

• The Economy!

» Lean is connected to competitive business drivers with substantial financial benefits

» Growing interest & experience with lean in

• service sector (hospitals, banking, insurance)

• government (15+ State and local environmental agencies)

What is Pollution Prevention (P2)?

Pollution prevention consists of any activity or strategy that » eliminates or reduces the use of toxic substances;» conserves water or energy; and/or, » reduces (or better yet, eliminates) the generation of

nonproductive output, hazardous waste, air emissions, wastewater, or other pollutants.

Buzzwords Relating to P2

Zero-Waste

Source Reduction

Sustainability

The Environmental Hierarchy

Lean Eliminates Production “Wastes” But Not Always Environmental Wastes

Lean’s “Deadly Wastes”

1. Defects2. Overproduction3. Waiting4. Non-value added (over-)

processing5. Transportation6. Inventory 7. Motion

Where are the environmental wastes?

• Excess material use

• Toxic / hazardous material use

• Scrap & non-product output

• Hazardous wastes

• Pollution (emissions/effluents)

• Energy and water consumption

Environmental Waste =

any inputs or outputs that do not add value to the product

Energy WasteHeating, cooling, lighting

Resource WasteRaw material, space, equipment, water

Process WasteScrap, rework, emissions, heat

Solid & Hazardous WasteExpired or unusable hazardous material, excess packaging (inbound or out), trash, manufacturing wastes

XX = Definite crossover with lean waste

Lean Manufacturing and Environment Integration Efforts

» EPA’s Lean and Environment Toolkit (2006) and Lean and Energy Toolkit (2007) and Lean and Chemicals Toolkit (2009)

• Designed to show lean practitioners how to integrate environmental & energy considerations into lean

• Practical strategies and tools that work with and support lean’s overall waste-elimination focus

Source: California MEP (www.cmtc.org)

Align Performance to Strategic Plans

Energy AuditsMeasure Energy Intensity/Output

Strat. Tools

Utility EE Programs

Hardware & Technology

OperationsStrategic Management

Kaizen

Continuous Improvement

Equipment & Tech Vendors

Sustain

•Value•Stream•Mapping

Continuous Improvement

House of Energy Efficiency

Similarities Between Lean and P2

» A systematic approach to continual improvement.» A systematic and on-going approach to identify and

eliminate waste.

• Root cause analysis

• Baseline assessments and data collection (lots)

» Active employee participation in improvement activities.

» Emphasis on metrics to inform decisions.» Engagement with the supply chain to improve

enterprise-wide performance.

DifferencesLean is fundamentally about competitiveness, not environmental improvement.

» Drivers/Motivation

• Lean Competitiveness, capital productivity, and customer satisfaction• P2 Reduced toxicity, consumption, waste, & pollution

» Methods (many of these tools can be used in tandem)

• Lean Value stream maps, 5S, standard work, flow, setup reduction,• P2 Process mapping, P2 and engineering assessments,

utilities assessment, environmental cost accounting

» Different “Wastes”

• Lean non-value added production waste • P2 Toxics, pollution, solid & hazardous waste, energy, water, material use

» Leadership

• Lean Operations and business managers• P2 Environmental or safety managers

Strategies for Adding Environment to Lean

#1 = Include the company EHS person

» Lean Training

• Include (“integrate” or “layer in”) environmental wastes not typically covered in lean

• Add a waste stream to lean simulations

» Lean Events

• Add “ESH” icons or flags

• Record environmental data on current state VSM

• Use P2 Checklists

• Process Mapping with environmental inputs/outputs

Example P2 Checklist ExcerptMetal Finishing Industry P2 Checklist Parts Cleaning: Mechanically pre-clean parts as much as possible first. Determine level of cleaning needed. Work with the supplier to use a corrosion inhibitor more easily removed or compatible with the cleaning system used on site. Arrange for JIT delivery to reduce or eliminate need for corrosion protection. Use a lower vapor pressure cleaner. Use an aqueous cleaner.

Reduce Drag Out Losses: Extend drip time; install drip racks. Install drainage boards between tanks to route drag out into the correct process tank. Reduce workpiece withdrawal rate from the chemical bath. Install air knives or water misters to remove drag out. Lower the concentration of plating bath constituents, increase the plating solution temperature. Both actions will reduce solution viscosity to enhance runoff. Rack workpieces being plated so that cavities open downward to promote draining. Use non-ionic wetting agents ….

Source: http://www.epa.ohio.gov/portals/41/p2/Kansas%20SBEAP%20Checklist.pdf

Current State Value Stream Map (Unmodified)

Market Forecast

Total Lead Time = 7 days Value Added Time = 8.5 hours

CustomerA

2 people

C/T = 4 minC/O = 3 hrUptime = 61%

Assembly &Inspection

2 people

Milling

C/T = 2 minC/O = 2 hrUptime = 74%

3 people

C/T = 7 minC/O = 4 hrUptime = 48%

Painting

I I I3 people

Shipping

4 hours3 hours2 hours

1 day 2 days1 day 2 days

Production ControlAnnual Production Plan

Weekly delivery schedule

Wee

kly

sch

edul

e

Daily sch

edu

le

Daily schedule

Daily scheduleWK

I

1days

D ID

30 daysWK

Receiving

C/T = 2 minC/O = 30 minUptime = 93%

Welding

1 day

32 minutes

CustomerBSupplier

1Supplier

2

Color Change

Delivery Delays

Actual

Value-Added

Current State Value Stream Map Example

Previous Page Next Page

Example of Adding a Materials Line

Materials lines can be developed for any major material source used in processes and products

2 people2 people

Milling

II

Welding

EHS EHS

5 lbs8 lbs

10 lbs12 lbsMaterials Used = 22 lbs Materials Needed = 13 lbsMaterials Wasted = 8 lbs

Top line: Materials Used by Process

Bottom line: Materials Added to Product During the Process

Expand the current state value stream mapping to include natural resource flows (energy, water, materials)

1 person1 person

Surface Prep

II

Paint

EHS EHS

7 lbs2 lbs

10 lbs5 lbs

Materials Used = 15 lbs Materials Needed = 9 lbsMaterials Wasted = 6 lbs

Water Used

5 gal2 gal

Water Used = 14 gal Water Needed = 10 galWater Wasted = 4 gal

4 gal

1 personI

Purge Spray Line

EHS

Materials Used

Materials Needed

Water Needed

5 gal

N/A

0 lbs

3 gal

5 gal

Lean/Green Value Stream Map – Inputs & Outputs

Louver Paint Line – Current State

Lean and Environment

Kaizen Events

Previous Page Next Page

What Are Kaizen Events?

» Cross-functional, team-based activities that:• Eliminate waste • Make rapid changes in the workplace

» Events last 2-7 days – and may involve pre-planning

» Steps in kaizen events include:• Gathering baseline data• Brainstorming improvement ideas• Testing ideas• Presenting the results

Example Lean Event Meeting Room

Bringing Environment into the Kaizen Event

» Environment, Health or Safety Officer participation

» Process mapping

» P2 checklists*, audits, and “Open Eyes”

» Environmental hazards/wastes - in 5S

* Also useful in VSM

Reasons to Include Environmental Health and Safety (EHS) Expertise in Kaizen Events

» If not properly managed for EHS impacts, kaizen events can:

• Result in regulatory compliance violations

• Create health and safety hazards for workers

• Overlook opportunities to reduce wastes and help organizations meet their environmental goals

The P2 Thinking Cap and “Open Eyes”» Processes or overproduction that unnecessarily consume raw material, chemicals, or

resources

• Can water use be reduced or spent water be reused, recycled?

• Is a chemical inventory management system utilized? (e.g., from 2,130 vs. 700)

• Can packaging be reduced? (e.g., reusable, buy in bulk)

» Processes that use highly toxic chemicals

• Why are these chemicals used? Are these the only option? • If no other option, can we reduce the amount used? • Can we reduce evaporation?

» Processes that generate major quantities of material wastes, including scrap, spoilage, overspray, defects, and inventory due to overproduction

• Can transfer efficiency or material utilization be improved?

• How can we reduce defects?

• If there is no opportunity to reduce, can one process’ scrap for another process?

» Processes that generate significant regulated emissions and effluents?

• Are there alternative, lower-VOC products that could reduce emissions?

• Are there alternative methods to clean equipment, purge spray lines, etc?

• Can transport, movement, and oversized equipment be changed/reduced to minimize emissions?

CASE STUDIES

WOODFOLD: Shutter Paint Line Improvements

• Lean Improvements

WIP reduced from 58 to 40 units

Mixed model line – paint and stain flow together

Better flow and line balance

Throughput – 20% potential capacity increase

Material Use

Minimum Fill

Before After

• Reduced overproduction of custom color paints by 48 gallons/year with a

simple container redesign.

• Increased paint transfer efficiency by around 15% with training and standard work for shutter painters.

Shutter Paint Line Improvements

Water Reductions

•Revised methods and criteria for flush water for line purging.

•Reduced water consumption by about 50% for this function – from 12 gallons/day to 6 gallons/day. (Saved a whopping $4, but stay tuned….

Shutter Paint Line Improvements

Energy

• Reduced energy associated with evaporating paint line flush wastewater stream.

Shutter Paint Line Improvements

Woodfold – Particulate Emissions

Actions: • Changed to a zipper-mounted filter system for

paint booths. • Improved spray transfer efficiency

Results: • Eliminated particulate emissions and increase

longevity of the filters.

• Reduced labor for filter changeout and added 156 hours of available paint booth time.

Woodfold Mfg., (Forest Grove, OR)Woodfold Mfg., (Forest Grove, OR)

Saving $43K/year with opportunities Saving $43K/year with opportunities identified by including P2 during their VSM.identified by including P2 during their VSM.

Reductions Source of Savings Annual Cost Savings Annual Time, Material, & Environmental Savings

Labor/Increased Capacity

New filter system $ 3,800 Over 160 hours

Material Avoided paint purchase (raw material) due to new paint container design

$ 1,440 48 gallons/year

Improved transfer efficiency $34,530 102 gallons primer980 gallons of lacquer

Emissions Improved transfer efficiency Not quantified 968 pounds VOCs82 pounds hazardous air pollutants (HAPS)

Disposal Filters (longer life) Not quantified Not quantified

PVC scrap to recycler $ 670 6 tons scrap PVC

Water New flush /purge water methods Not quantified 2,600 gallons/year

Energy Reduced use of evaporators due to improved water use

$ 3,300 120,000 kwh electricity

Total Cost Savings (Quantified as of 12/07) $43,740  

Three Washington Pilot Projects: ’06 – ‘07

Collective Annual Cost Savings in Productivity and Environmental Improvements:

$1.6 Million

“I believe the collective experience has set the groundwork for future lean and environmental improvement efforts at our company.”

Canyon Creek Cabinet CompanyExcerpts from Pilot Project - 2006

Lean and Environment Pilot Project

» Conducted through a grant partnership with the Washington State Manufacturing Extension Center and Washington Department of Ecology

» Lean 101 Training» Value Stream Mapping Event» 3 One-Week Kaizen Events for Each of Two Teams

• Woodworking and milling (Woodchuckers)

• Cabinet surface coatings (Toxics Team)

Kaizen Event – New Saws and In-Flow Layout

» 3 new crosscut saws

» Cutting time per day (before)

• 368 sheets/day @ 120 sec/sheets = 12 hours 15 min

» Cutting time per day (after)

• 219 cuts @ 21 sec/cut = 1 hour 17 minutes

----------------------------------------------------------------------------» Reduction in time: 90% = $31,000» Reduction in sheets required: $194,000/year» Reduction in waste removal: 580,000 lbs/year and $58,000/year

-----------------------------------------------------------------------------------------------

Layout improvements saved: Over 650 foot-miles of foot travel per year!

5S in the Work Area –Set in Order with Visual Controls

• Orphan Bin, Doors & Drawer FrontsOrphan Bin, Doors & Drawer Fronts Before Before After After

Quality / Inspection Line

Before After

Better ergonomicsIn-Line (reduced travel)Improved lighting

Changes reduced cost of rework by $208,000/yr

Capital Equipment is Not Typical Lean - Solvent-Based Staining

Before After

Aqueous Purge System (1 of 2)

Example of Mistake Proofing (Poka Yoke)

Aqueous Purge (2 of 2)

Waste1.3 quarts

New

Old

Waste0.5 quarts

Recoverable Product1 quart

Daily Rejects

263

323

264

220

183

263

228

262

233

195211

171

206215

242

215 214

284279

246

203

0

50

100

150

200

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300

350

7/17

/200

6

7/18

/200

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/200

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7/28

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7/31

/200

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8/1/2

006

8/2/2

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8/3/2

006

8/4/2

006

8/7/2

006

8/8/2

006

8/9/2

006

8/10

/200

6

8/11

/200

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8/14

/200

6

Material substitution –

Topcoat to “Unicoat”» Reduced Volatile organic compound

(VOC) emissions by 114,535 pounds/year.

» Now will not need to file for Title V air permit even with a 70% increase in production)

Lasco Bathware

Spray Variability» Reduced

variability from +13 lbs/unit to +4 lbs/unit (69%)

» Reduced overspray and calibration waste

» Stronger products (more resin on the product)

Columbia Paint Columbia Paint Reducing Bad Batches and Inventory Reducing Bad Batches and Inventory Waste By Reorganizing IngredientsWaste By Reorganizing Ingredients

BEFORE AFTER

ON Semiconductor (Idaho)ON Semiconductor (Idaho)

Used a Facility Map (Pseudo-VSM) to Used a Facility Map (Pseudo-VSM) to Identified Environmental ImprovementsIdentified Environmental Improvements

Avoid disposal of 800 booties /month

• Eliminate redundant lab refrigerators • Turn off lab incubators when not in use • Consolidate office space and duplicate services • Evaluate beneficial end use for calcium fluoride cake waste• Shut down records building (heated, sprinkler)• Right-size the nitrogen gas production system

Food Processor (in Oregon)Food Processor (in Oregon)

Used VSM to Identify Wasted Water, Used VSM to Identify Wasted Water, Energy, and Material Energy, and Material

A Case of “That’s the Way We’ve A Case of “That’s the Way We’ve Always Done It”. Always Done It”.

• Dumpster Dive – tons of food processing residuals • Plant clean-up day

• Incredible amount of water used at plant • Heated water to clean food residuals• Wash water collection and treatment

•Energy•Dewatering of solids•Permitting/BOD issues

• Found local composter• Changed cleaning process to remove most of solids

For More Links/Info

www.pprc.org/solutions/leangreen.cfm

NOT USING NEXT SLIDES

AFTER

•57

Lean Production’s Environmental “Coattails”• Less scrap, fewer defects, less spoilage =

reduced waste• Fewer defects, less overproduction, simpler products, right-

sized equipment = reduced use of raw materials

• Less storage, inventory space needed = reduced materials, land, and energy consumed

• Less overproduction, lighting/heating/cooling unneeded space, oversized equipment =

less energy use• Less overprocessing, efficient transport and movement =

lower emissions• Clean, orderly workplace w/ well-maintained equipment =

fewer accidents; leaks & spills are noticed quickly

P2 Checklists» Processes or overproduction that unnecessarily consume raw material, chemicals, or

resources

• Can water use be reduced or spent water be reused, recycled?

• Is a chemical inventory management system utilized? (e.g., from 2,130 vs. 700)

• Can packaging be reduced? (e.g., reusable, buy in bulk)

» Processes that use highly toxic chemicals

• Why are these chemicals used? Are these the only option? • If no other option, can we reduce the amount used? • Can we reduce evaporation?

» Processes that generate major quantities of material wastes, including scrap, spoilage, overspray, defects, and inventory due to overproduction

• Can transfer efficiency or material utilization be improved?

• How can we reduce defects?

• If there is no opportunity to reduce, can one process’ scrap for another process?

» Processes that generate significant regulated emissions and effluents?

• Are there alternative, lower-VOC products that could reduce emissions?

• Are there alternative methods to clean equipment, purge spray lines, etc?

• Can transport, movement, and oversized equipment be changed/reduced to minimize emissions?

Characteristics of a Lean CultureCharacteristic Traditional Progressive (Lean/Green)

Philosophy Short term results People disposableProduct disposableMaterials disposableBottom line focused

Long term healthPeople as assetsProduct returned / re-usedMaterials conserved / recycledCustomer focused

Quality Meets the specRole of a specialist

Continually improveEveryone’s job

Structure Autocratic mgmt styleHierarchical, deep

Leadership styleFlexible and flat

Process flow Large lot sizesLong set-up timesHigh inventoryProcess focused layoutLong lead-times

Small lot sizesShort set-up timesLow inventoryProduct focusedShort lead-times

People Narrow skillsSpecialistsFixed training

Broad skill setGeneralists (w. a specialty)Cross training

Technology Large machinesCapacity driven

Small flexible machThroughput driven